Please direct any questions to Faraz Ansari at 404-926-5819.)
Exhibit 10.6
0000 Xxxxxxxxx Xxxx, X.X.
Center Code 3913
Atlanta, Georgia 30326
Member NASD and SIPC
Center Code 3913
Atlanta, Georgia 30326
Member NASD and SIPC
July 18, 2007
Confirmation of Swap Transaction
THIS LETTER AGREEMENT SHOULD BE REVIEWED, EXECUTED BY AN AUTHORIZED
PERSON(S), AND RETURNED IMMEDIATELY VIA FAX TO 000-000-0000 OR 000-000-0000.
(Please direct any questions to Xxxxx Xxxxxx at 000-000-0000.)
Xxxxx Xxxxx
Treasurer
Xxxxxx Express Corporation
00 Xxxxxxx Xxxxxx Xxxxx
Xxxxx Xxxxxxxx, Xxxxx 00000
Ph#: 000-000-0000
Fax#: 000-000-0000
Treasurer
Xxxxxx Express Corporation
00 Xxxxxxx Xxxxxx Xxxxx
Xxxxx Xxxxxxxx, Xxxxx 00000
Ph#: 000-000-0000
Fax#: 000-000-0000
REF: 120387
Dear Xx. Xxxxx:
The purpose of this Confirmation is to set forth the terms and conditions of the Swap Transaction
entered into between SunTrust Bank (“SunTrust”) and Xxxxxx Express Corporation (“Counterparty”) on
the Trade Date specified below. The definitions and provisions contained in the 2000 Definitions
published by the International Swaps and Derivatives Association, Inc. (“ISDA”), as amended and
supplemented from time to time (the “Definitions”), are incorporated by reference into this
Confirmation. In the event of any inconsistency between the Definitions and this Confirmation,
this Confirmation will govern.
1. | The terms of the particular Swap Transaction to which this Confirmation relates are as follows: |
Notional Amount:
|
$40,000,000 | |
Trade Date:
|
July 18, 2007 | |
Effective Date:
|
July 23, 2007 | |
Termination Date:
|
July 12, 2009, with adjustment in accordance with the Modified Following Business Day Convention |
2
Business Days:
|
New York and London | |
Calculation Agent:
|
SunTrust | |
Fixed Amounts |
||
Fixed Rate Payer:
|
Counterparty | |
Fixed Rate Payer Payment Dates:
|
The 22nd day of each month beginning August 22, 2007, through and including the Termination Date, subject to adjustment in accordance with the Modified Following Business Day Convention | |
Fixed Rate:
|
5.199% per annum | |
Fixed Rate Day Count Fraction:
|
Actual/360 | |
Adjustment to Period End Dates:
|
Applicable | |
Floating Amounts |
||
Floating Rate Payer:
|
SunTrust | |
Floating Rate Payer Payment Dates:
|
The 22nd day of each month beginning August 22, 2007, through and including the Termination Date, subject to adjustment in accordance with the Modified Following Business Day Convention | |
Floating Rate Option:
|
USD-LIBOR-BBA | |
Designated Maturity:
|
1 month | |
Floating Rate for initial Calculation Period:
|
To be determined | |
Floating Rate Day Count Fraction:
|
Actual/360 | |
Spread:
|
Inapplicable | |
Adjustment to Period End Dates:
|
Applicable | |
Reset Dates:
|
The first day of each Floating Rate Payer Calculation Period |
2. | Other Provisions |
(a) Relationship Between the Parties. Each party hereto will be deemed, as of the Trade
Date, to represent to the other party (absent a written agreement between the parties that
expressly imposes affirmative obligations to the contrary for that Swap Transaction): -
3
(i) Non-Reliance. It is acting for its own account, it has consulted appropriate
legal, tax, financial and other advisers prior to entering into the Swap
Transaction, and it has made its own independent decisions to enter into the Swap
Transaction and as to whether the Swap Transaction is appropriate or proper for it
based upon its own judgment and upon advice from such advisers as it has deemed
necessary. It is not relying on any communication (written or oral) of the other
party as investment advice or as a recommendation to enter into the Swap
Transaction, it being understood that information and explanations related to the
terms and conditions of the Swap Transaction will not be considered investment
advice or a recommendation to enter into the Swap Transaction. No communication
(written or oral) received from the other party will be deemed to be an assurance or
guarantee as to the expected results of the Swap Transaction.
(ii) Assessment and Understanding. It is capable of assessing the merits of and
understanding (on its own behalf or through independent professional advice), and
understands and accepts, the terms, conditions and risks of the Swap Transaction.
It is also capable of assuming, and assumes, the risks of the Swap Transaction.
(iii) Status of Parties. THE OTHER PARTY IS NOT ACTING AS A FIDUCIARY FOR OR AN
ADVISER TO IT IN RESPECT OF THE SWAP TRANSACTION.
(b) SunTrust has the right, but not the obligation, to terminate the Swap Transaction if
seventy-five (75) days have elapsed since the Trade Date and the ISDA Form and its
accompanying Schedule have not been executed by the Counterparty and received by SunTrust.
If this right to terminate is exercised, SunTrust will be entitled to receive from the
Counterparty, or will be required to pay to the Counterparty, the fair market value for such
termination as determined by SunTrust in good faith and in accordance with market practice
and its own customary procedures.
(c) To help the government fight the funding of terrorism and money-laundering activities,
federal law requires SunTrust to obtain, verify, and record certain identifying information
about its customers. The Counterparty will need to provide to SunTrust its legal name,
physical address, date of birth, if applicable, and other identifying information, including
identifying documents, to assist in this verification process.
4
3. | Account Details |
Payments to SunTrust
SunTrust Bank
ABA # 000000000
FBO: Bond Wire Clearing
Account # 0000-0000-00
Attn: Financial Risk Management, Operations
ABA # 000000000
FBO: Bond Wire Clearing
Account # 0000-0000-00
Attn: Financial Risk Management, Operations
Payments to the Counterparty
Depository: Xxxxxx Bank
ABA # 000000000
Favor of: Xxxxxx Express Corporation
Account # 0000000
ABA # 000000000
Favor of: Xxxxxx Express Corporation
Account # 0000000
Please confirm that the foregoing correctly sets forth the terms of the Swap Transaction by signing
this Confirmation and immediately returning all its pages via fax (without a cover sheet) to
000-000-0000 or 000-000-0000.
Very truly yours, | Accepted and Confirmed as of the date first written: | |||||||||
SUNTRUST BANK | XXXXXX EXPRESS CORPORATION | |||||||||
By: | /s/ Xxxxxx Xxxxxx | By: | /s/ Xxxxxx Xxxxx | |||||||
Xxxxxx Xxxxxx | Name: | Xxxxxx Xxxxx | ||||||||
Vice President | Title: | VP, Investor Relations & Treasurer |